UNICHEM LABORATORIES LTD significantly underperformed today. It returned -2.6% to close at 208.15. It's recent 5 day performance has been +2.13%, +4.08%, +1.46%, +0.92% and +0.26%.
UNICHEMLAB showed a flat trend over the last 3 months. During this period UNICHEMLAB returned +0.48% and saw a maximum drawdown of -14.2%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in UNICHEMLAB till volatility reduces and a clear trend emerges.
During the last three months UNICHEMLAB delivered losses on 59% days. However, it still managed to end this period in a profit. It's best return during this period (of +5.61%) was on Tuesday, 27 Nov, 2018. While it's worst loss in the same period (of -3.37%) was on Tuesday, 23 Oct, 2018. There was initially a bearish trend during this period which started on 28 Nov, 2018 and went on till 10 Dec, 2018. The trend delivered -11.12% losses to investors. This was followed by a bullish trend that started on 10 Jan, 2019 and ended on 17 Jan, 2019. This bullish trend delivered +9.78% to investors.
On monthly basis, UNICHEMLAB delivered losses in more months over the last year, than profits. UNICHEMLAB delivered profits less regularly than NIFTY-50 index. UNICHEMLAB was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -15.14% compared to -6.42% returned by NIFTY-50 index in Sep 2018. UNICHEMLAB had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from Feb 2018 to Jul 2018) during which period it delivered -40.01%. It is interesting to note that both UNICHEMLAB and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Too many people spend money they earned..to buy things they don't want..to impress people that they don't like.
-- Will Rogers
UNICHEMLAB is becoming more volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in UNICHEMLAB's volatility from 23 Oct, 2018 to 2 Jan, 2019. While there was a significant fall in the NIFTY-50 index's volatility from 31 Oct, 2018 to 5 Dec, 2018.
Advanced/professional short-term investors should note that UNICHEMLAB has significant negative skewness in it's return distribution. This indicates that UNICHEMLAB is very risky for short-term investment and can significantly underperform for long durations.
UNICHEMLAB has more chance of extreme outcomes than the NIFTY-50 index. Therefore, UNICHEMLAB must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than UNICHEMLAB.
On a general note (since you are interested in UNICHEMLAB), if you are an investor in ~HOMEAPPLIANCES, you need to be extra careful (consider limiting your exposure or diversifying) as it is extremely unpredictable and therefore risky.
... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.
All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.
We want to empower investors with all the tools and analysis required by them to make a rational investment decision.If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute